Should you launch on eBay? A viability checklist by product category

In the era of Shopify storefronts and viral TikTok Shop listings, eBay is often dismissed as a marketplace of the past — but its 134 million active buyers tell a different story. Unlike Amazon, which acts as both a marketplace and a competitor, eBay offers a neutral ground for ecommerce founders to validate product-market fit and generate early cash flow. 

However, not all merchants will have the same experience on the platform. Your likelihood of success depends on factors such as the products you sell, your customers, and the platform’s fees for your niche. 

In this article, we’ll guide you through the platform's viability, the realities of the fee structure, and the business considerations necessary to make an informed launch decision.

Before diving into which product categories succeed on eBay, it’s helpful to evaluate the platform’s structural incentives. eBay is designed to facilitate transactions, not necessarily to build brand equity.

Benefits

• Built-in demand. You don’t need to spend thousands on Meta ads to get your first sale. eBay brings the traffic to you, which is critical for bootstrapped businesses managing cash flow.
• Lower barrier to entry. Unlike Amazon, which has strict category gating and higher monthly fees for professional accounts, eBay offers a more flexible start with lower upfront costs.

Drawbacks

• Competitive pressure on pricing. Because eBay shoppers are often deal-hunters, you may face significant pricing pressure. This can erode your margins (especially factoring in eBay’s selling fees) if your unit economics aren't thoughtfully managed.
• Limited brand control. You are essentially renting eBay’s customers, rather than building your own community. Unlike Shopify, where you own the customer email list, or even Etsy, which fosters a follower-based community, eBay’s standardized interface makes it difficult to retarget buyers or build long-term loyalty.

eBay is not a one-size-fits-all marketplace. Success is highly correlated with your vertical. While commoditized goods have tons of competition, niche and high-value categories can perform well on the platform.

Let’s take a look at some of the most common ecommerce categories:

• Refurbished or used electronics: Buyers in this category are price-sensitive, seeking specific technical specifications rather than new brands. Competition in this category can mean thin margins, and a ~13% final value fee can quickly eat into profitability unless you have a unique sourcing advantage in finding underpriced inventory.
• Women’s bags and handbags: eBay functions like a global thrift store where authentic listings can drive high-ticket sales. While fee structures are higher here (~15% for products under $2,000), the robust gross margins on vintage finds often absorb the cost, and competition is far less intense for curated, one-of-a-kind pieces than for generic used bags.
• Collectibles (trading cards, coins, toys): This category is driven by collectibles enthusiasts, with customers prioritizing authenticity and condition above all else. Fee sensitivity is low among sellers because access to liquidity justifies the cost, and pricing power is driven entirely by the listing's scarcity rather than market competition.
• Home goods and decor: Buyers here are typically driven by utility and frequently cross-shop against Amazon, making it difficult to compete on speed or shipping costs. High shipping fees on bulky items can deter customers to shop elsewhere, and it’s difficult to differentiate generic goods from unique offerings found on Etsy.
• Health and beauty: Because customers are typically converted through branded campaigns that drive traffic directly to DTC sites or major retailers, eBay often serves as a channel for bargain hunters rather than a primary destination for brand discovery. With moderate competition from Amazon arbitrage sellers and low average order values, the selling fees can feel disproportionately heavy.
• Digital and handmade goods: The delivery process for digital goods is more friction-heavy than on specialized platforms, and handmade goods often struggle to reach the right "maker" audience compared to Etsy. While fee sensitivity is low due to the absence of shipping costs, the interface isn't designed for the storytelling required to sell handmade goods or digital products.
• Automotive parts and industrial niche: This vertical serves buyers who know exactly what they need. As a result, customers are less price-sensitive. eBay’s superior fitment data creates a significant moat against Amazon, enabling specialists to build a reputation for reliability while maintaining high margins that keep standard fees manageable.

Let’s take a look at founders who found their sweet spot on eBay

Yinka Ogunsunlade: The art of demand-led sourcing

By day, Yinka Ogunsunlade is a full-time attorney; by night, he runs a six-figure eBay business selling athletic footwear and apparel. His strategy relies entirely on "demand-led sourcing" — he photographs potential inventory at discount retailers and reviews real-time eBay transaction data before buying a single item. This strict discipline allows him to generate ~$120,000 annually with zero upfront risk, proving that you can scale a significant revenue stream without quitting your day job.

Adrien Lavoie: From his parents’ basement to 11,000 sq ft

Adrien Lavoie founded Wooki by selling outdoor gear and bike parts. He realized that while his local brick-and-mortar reach was limited, eBay offered a global audience for niche components. By utilizing eBay for international distribution, he scaled his operations to a warehouse shipping 200 items a day, eventually using the cash flow to fund a physical retail expansion. For Adrien, eBay wasn't just a sales channel; it was the engine that funded his broader business growth.

While eBay makes it easy for anyone to get started selling, there is a difference between a casual seller and laying the foundation for your ecommerce journey. 

If you are planning for long-term growth, here are a few things you should know. 

Do I need a business license to sell on eBay?

Technically, no — you can start selling as an individual, and eBay typically does not require a business license for merchants. However, once you start buying inventory wholesale or generating significant revenue, a business license might be required by your local jurisdiction to stay compliant. Furthermore, having a seller’s permit and a resale certificate allows you to purchase inventory tax-free, helping preserve your margins.

Should I choose a Personal or Business account?

If you’re serious about building a long-term ecommerce business, you should consider opening a Business account.

• Personal accounts are typically for casual hobbyists clearing out their closets.
• Business accounts offer higher selling limits, lower fees for high-volume transactions, inventory management tools, and the ability to sell under a brand name rather than a personal user ID.

Can I sell or transfer an eBay business account?

eBay accounts are tied to the owner’s identity and financial history, and therefore, generally cannot be transferred. While you can sell a business's assets (inventory, brand IP), transferring the eBay account history is difficult and often violates the terms of service. If you plan to exit your company eventually, it’s critical that you open the account under a business entity, rather than your personal identity.

With so much choice on the market, choosing which platform is “best” for your business can feel overwhelming. Here’s a breakdown of how eBay compares to other key competitors.

eBay versus other platforms: Best for

• eBay: Resellers, vintage, auto parts, refurbished tech.
• Amazon: High-volume commodity goods and private-label brands.
• Shopify: Brand building, DTC, owning customer data.
• Etsy: Handmade goods, craft supplies, vintage decor.

eBay versus other platforms: Fee breakdown

• eBay: Insertion fees + Final Value Fee (~13%).
• Amazon: Referral fees (8–15%) + FBA fulfillment fees (variable).
• Shopify: Monthly sub ($29+) + Transaction fees (low).
• Etsy: Listing fee ($0.20) + Transaction fee (6.5%) + Payment processing.

eBay versus other platforms: Ownership

• eBay: You rent the customer.
• Amazon: You rent the customer (and compete with Amazon).
• Shopify: You own the email list and experience.
• Etsy: You rent the traffic but can build a shop following.

eBay versus other platforms: Launch speed

• eBay: Account setup is instant.
• Amazon: Verification can take time; strict gating.
• Shopify: You must build the site and drive traffic.
• Etsy: Setup is instant; finding the right audience takes time.

Launching on eBay helps founders validate product-market fit, test their ideal customer profile (ICP), and generate early cash flow. But to move beyond the early “hobbiest” phase, you must strictly separate your finances, establishing the banking infrastructure and software stack necessary to support a legitimate, ecommerce business.

To transition from a side hustle to a scalable business, you need to operationalize your financial infrastructure from day one. When sales increase, commingling funds can make it difficult to understand your company’s financial health.

• Separate your funds: Open a dedicated business bank account to receive eBay payouts and pay for inventory. This ensures that every dollar in the account belongs to the business, giving you a clear view of your actual working capital.
• Track your unit economics: eBay fees can be complex. Use accounting software to calculate your net profit on every SKU, ensuring you aren't unknowingly scaling an unprofitable model.

As you grow, your financial infrastructure needs to support increasingly complex operations and provide tools to manage cash flow and surface insights into your company’s financial health. 

Mercury offers a complete suite of banking and financial tools to help ecommerce founders scale their side hustles into full-fledged ecommerce companies and focus on strategic decisions — such as inventory forecasting and channel expansion — that drive long-term growth.

Deciding to launch on eBay is less about the platform itself and more about the type of business you intend to run. In the right product category, it offers convenient liquidity; in others, it can be a barrier to building your distinct brand. 

Regardless of where you start, serious ecommerce entrepreneurs should treat their early operations like the business they want to be — managing their unit economics, building their operations, and partnering with a financial stack like Mercury that can scale with you.